Human Life Value Calculator

What is HLV (Human Life Value)?

Human life value, or HLV or ideal life cover is a number that indicates the present value of future income, expenses, liabilities, and investments. This number is generally used to determine the amount of money needed to secure your dependents’ lives with term insurance if you are no longer there to provide for them. , Based on your HLV, you can assess the finances your dependents will need to fund their expenses in your absence or unfortunate demise. Basically, you should purchase term insurance with a cover equivalent to your HLV for the people who depend on you to sustain their lifestyle.

What is the Human Life Value (HLV) Calculator?

The human life value calculator, or the HLV calculator, helps you estimate the current worth of your future income. The tool can help you tackle the financial stress your family might face during your unfortunate absence. This Human Life Value (HLV) Calculator further helps you determine the estimated life cover you need to secure loved ones. Simply put, this Human Life Value guides you towards identifying the death benefit amount your dependents will be entitled to out of your term insurance policy.

For example, if Anjali is a 35-year-old earning ₹10 lakhs annually, with a plan to cover until 60, the HLV calculator might suggest she needs ₹2.5 crore in life insurance coverage to ensure her family can maintain their current lifestyle and cover future expenses if she were no longer around to provide financially.

How Does the Human Life Value Calculator Work?

Let’s understand human life value calculation with the help of this example:

Aakash is currently 37 years old and earning 15 Lakhs per month. He already had active life insurance of 10 Lakhs and wanted to check his eligibility for another life insurance. He enters his age, annual income, and the existing life insurance’s cover amount into the HLV calculator. The human life calculator displayed his total eligibility for a 3 Crore life insurance. However, since he already had a 10 Lakh cover, he is eligible to purchase a new plan of cover of up to 2.8 Crores.

How To Calculate Human Life Value Online?

Understand how to calculate human life value online and use the calculator to know the results in seconds. Below mentioned are the steps to use the Human Life Calculator:

Step 1: Enter your age.

Step 2: Enter your annual income.

Step 3: Mention if you have existing life insurance coverage an existing life insurance cover.

Step 4: Click on “Calculate Now”.

Calculating HLV may seem complicated to be done manually, given that many factors must be considered. With this online HLV calculator, the task has become much easier and reliable. However, your Human life value at 25 will be different from what you shall need at the age of 35. Therefore, use the HLV calculator featured on our website regularly to keep updated about your insurance needs.

Note: It is suggested to calculate the term plan premium on the term insurance calculator online tool by Policybazaar before buying the plan.

Why is HLV or Human Life Value Calculation Important?

HLV is an important metric to determine insurance needs if you have family members depending on you for finances. When choosing an insurance cover, you should ensure that it is as comprehensive as possible to enable a smooth transition for your family after your death. Having an idea of the financial obligations and ensuring that your dependents don’t have to struggle to keep up with those is why calculating your HLV is important.

Briefly, calculating your HLV will help you address the following uncertainties:

• You can assess if your current term life cover amount is sufficient with the inflation rate.

• If there has been a new addition to your family, say a newborn, you can identify if the cover amount suffices their needs as well.

• In line with the above two pointers, you will be able to analyze if you need another term life insurance cover.

• You can estimate how much more your second life cover should be worth to arrive at a well-rounded, comprehensive figure.

How Does The Human Life Value Calculator Help You?

The assistance you receive from the HLV Calculator is primarily two-fold. Let’s understand here:

1. Income Replacement:

   The method estimates the regular income that your family will need from the insurance payout to support themselves.

2. Need-based:

   This considers the specific needs the insurance cover is expected to cover, such as debts/loans, mortgages, etc. Need-based calculation can also be used to finance goals such as child education, marriage, etc.

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